Prima Casa Benefits
First Home Tax Relief in Italy — for Expats & Foreign Buyers
Buying your first Italian property as your primary residence unlocks significant tax reductions — on both the purchase and the mortgage. Foreign nationals and expats can access these benefits. Here's what they are and how to qualify.
What prima casa agevolazione means
In Italy, the agevolazione prima casa is a reduced-tax regime for buyers purchasing their first home as a primary residence. The main benefits are: the imposta di registro drops from 9% to 2% of the cadastral value, and the imposta sostitutiva (mortgage stamp duty) drops from 2% to 0.25%. For buyers from a developer, the IVA on the purchase drops from 10% to 4%. The combined saving on a typical Italian property can reach €15,000–€30,000 depending on property value and loan amount.
The numbers
Standard purchase vs. prima casa
| Tax | Standard purchase | Prima casa | Saving on €400k property |
|---|---|---|---|
| Imposta di registro Resale property (private seller) |
9% of cadastral value | 2% of cadastral value | ~€14,000–€20,000 |
| IVA New build / developer |
10% of sale price | 4% of sale price | ~€24,000 |
| Imposta sostitutiva Mortgage stamp duty |
2% of loan amount | 0.25% of loan amount | ~€4,200 on €240k mortgage |
| IMU (annual property tax) Ongoing, per year |
0.4–1.06% of cadastral value | Exempt (primary residence) | €500–€2,000/year ongoing |
Cadastral value is set by the Italian cadastre (catasto) and is typically significantly below market value. Savings are indicative and vary by property.
Eligibility
Who can access prima casa?
The standard case. If you are already registered as a resident in an Italian municipality, you qualify provided you meet the other conditions (no other Italian residential property, no prior prima casa use).
You do not need to be resident at the time of purchase. You can declare in the notaio deed that you intend to establish Italian residency within 18 months of the purchase date. This declaration triggers the agevolazione immediately — the tax is applied at the reduced rate at closing. You then have 18 months to fulfil the commitment by registering residency at the relevant comune.
Italians registered as resident abroad (AIRE) can access prima casa benefits when buying in Italy. Two routes exist: Track A — the property becomes your primary residence within 18 months (standard relocation route); Track B — a specific exemption for AIRE Italians abroad for work reasons, with no residency commitment required if four conditions are met (see FAQ below). Many AIRE Italians believe prima casa is unavailable to them. It is — in either track.
Foreign nationals who are resident in Italy for work — even temporarily — and whose employer is based in Italy can in some cases qualify without the 18-month commitment. Specific to the municipality of their workplace registration.
The conditions
What you must meet to qualify
- The property must be in a category eligible for prima casa (residential use — not luxury categories A/1, A/8, A/9)
- You must not own another residential property in Italy at the time of purchase (or must sell it within 1 year)
- You must not have previously benefited from the prima casa agevolazione on another Italian property
- You must establish the property as your primary residence within 18 months of the purchase (or it must already be in the comune where you are registered)
- You must declare the prima casa intent explicitly in the notaio deed at the time of signing
FAQ — Prima casa
Your questions, answered
Yes. You do not need to be resident in Italy at the time of purchase. You must, however, commit — in the notaio deed — to establishing your Italian residency within 18 months of the purchase date. The tax benefit is applied immediately at the reduced rate. If you do not fulfil this commitment within 18 months, the tax authorities reclaim the difference and apply a 30% penalty. For buyers genuinely planning to relocate, this is commonly done and straightforward.
The Agenzia delle Entrate will issue a notice reclaiming the unpaid difference (7% of cadastral value), plus a 30% penalty on that amount, plus legal interest from the date of purchase. In practice, this can add up to 10–11% of the cadastral value in total — more than if you had paid standard rates at closing. Only declare prima casa intent if you have a concrete and realistic plan to establish Italian residency within the 18-month window.
Yes. The prima casa agevolazione applies to: (1) the imposta di registro on the property purchase (from 9% to 2%), (2) the imposta sostitutiva on the mortgage (from 2% to 0.25%), and (3) the IVA if buying from a developer (from 10% to 4%). In addition, as a prima casa owner, the annual IMU property tax is fully waived as long as the property is your primary residence. The combined value of these savings is substantial.
Yes — and there are two distinct routes.
Track A — Returning to Italy: Declare prima casa intent in the notaio deed and establish Italian residency within 18 months of purchase. Standard route for AIRE Italians planning to relocate.
Track B — Staying abroad (AIRE work track): Italian law provides a specific exemption for AIRE Italians who moved abroad for work reasons. No 18-month residency commitment is required, provided all four conditions apply:
- You are registered with AIRE for work reasons (motivi di lavoro)
- You held Italian residency for at least 5 consecutive years before moving abroad
- The property is in the municipality where you were last resident in Italy, or where you worked or studied before leaving
- You do not own another Italian property purchased with prima casa benefits — solely or jointly
Confirm which track applies with a notaio and a tax advisor before signing.
Planning to relocate?
Prima casa is most valuable when combined with an optimal mortgage and residency timing. Read the full guide for relocating buyers — including Impatriati, Flat Tax, and the mortgage sequence.
Want to know if prima casa applies to your situation?
Free 30-minute call — I'll confirm your eligibility, explain the savings in concrete terms, and map the residency timeline to your purchase plan.